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Popular Word Problems >

Kenny has 500 in an account. The interest rate is 5% compounded annually.To the nearest cent, how much interest will he earn in 1 year?

Solución

Ke nn y ha s 500 in an a cco u n t . T h e in t eres t r a t e i s 5% co m p o u n d e d ann u a ll y . T o t h e n e a res t ce n t, h o w m u c h in t eres t w i ll h e e a r n in 1 ye a r ?

Solución

Interest : 25

Pasos de solución

Translate the problem into an equation:

525 = 500 + I

Resolver para

I, 525 = 500 + I : I = 25

Interest : 25

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